cost of getting a degree

DSC: I agree with Brandon Busteed on this item — excellent pricing/tuition transparency!

On 09/18/2024, in changing business models, colleges, community colleges, cost of getting a degree, faculty/staff, higher education, ideas, law schools, leadership, learning ecosystem, new business models, parents/guardians, society, sociology, strategy, student-related, United States, universities, by Daniel Christian

From DSC:
The cost of obtaining a degree is heavily on my mind this morning as I’m having to withdraw funds — again — to help our son get through his senior year of college. He’s a Marine Reservist and he continues to do his best to contribute to his expenses…but man o’ man, these expenses are just crazy.

So it’s no surprise this item caught my eye! Anything colleges and universities can do to bring down the prices — as well as make the total prices more transparent and upfront — would be greatly appreciated by students and families alike.

Also related, see:

How Rising Higher Ed Costs Change Student Attitudes About College — from edsurge.com by Jeffrey R. Young

But she admits the issue is complicated. She said one of her own daughters, who is now 26, would have benefitted from a gap year. “The problem was the cost was a major factor,” Klein told me. “She was offered huge financial aid by a very good school, and I said, ‘We don’t know if you take a gap year if that offer is going to be on the table. And I can’t afford this school without that offer.’”

Risepoint Releases Voice of the Online Learner Report

On 09/12/2024, in Artificial Intelligence/Agents/LLMs/and Related, business side of he, colleges, community colleges, cost of getting a degree, higher education, online learning, parents/guardians, skills, society, student-related, United States, universities, by Daniel Christian

Risepoint Releases Voice of the Online Learner Report — from academicpartnerships.com by Risepoint; via Jeff Selingo on LinkedIn

The Voice of the Online Learner report highlights the journey of online learners, and the vital role education plays in their personal and professional growth and development. This year’s report compiled responses from over 3,400 prospective, current, and recently graduated online learners.

Key findings from this year’s Voice of the Online Learner report include:

Decision Factors for Online Students: When evaluating online programs, the key decision for students is cost, with 86% saying it’s extremely or very important. After cost, 84% said accreditation is most important, 75% said program concentrations, followed by 68% of respondents who said it was the time it took to achieve a degree. 38% selected the lowest cost program they evaluated (up from 29% in 2023).
Perception of Online Programs: Students see online programs as equally valid or better at meeting their needs than on-campus degree programs. 83% of respondents prefer the flexibility of online programs over hybrid or on-campus options, while 90% feel online programs are comparable to or better than an on-campus degree. 83% (up from 71% last year) want no on campus requirement.
Degree ROI: 92% of students who graduated from online degree programs reported tangible benefits to their career, including 44% who received a salary increase.
Value of the Degree: Career outcomes continue to be very important for students pursuing their degree.86% felt their degrees were important in achieving their career goals, and 61% of online undergraduates are likely to enroll in additional online degree programs to stay competitive.
Importance of Local Programs: Attending a university or college in the state where the student lives and works is also an important decision factor, with 70% enrolled at a higher education institution in the state where they live and/or work. These students say that local proximity creates greater trust, and that they also want to ensure the programs meet local licensing or accreditation requirements, when relevant.
Demographics: The average age for online students enrolled in undergraduate programs is 36 years old, while the average age for students enrolled in graduate programs is 38 years old. Of the students enrolled in undergraduate programs, 40% are first-generation college students.
Upskilling is lifelong: 86% of graduated and currently enrolled students are likely to do another online program in the future to upskill.
Generative AI is a concern: Students want guidance on generative AI, but 75% reported they have received none. 40% of students think it will affect their career positively and 40% believe it will impact them negatively. Nearly half (48%) have used it to help them study.

DC: Shame on you Northwestern University!

On 09/06/2024, in cost of getting a degree, culture, Daniel S. Christian, ethics, faculty/staff, hearts -- matters of the heart, higher education, liberal arts, psychology, society, sociology, United States, universities, by Daniel Christian

DC: Shame on you Northwestern University. It’s yet another example of how the U continues to move away from our far more noble roots.https://t.co/uQoxFAdTpW

— Daniel S. Christian (@dchristian5) September 6, 2024

Speaking of higher education…

Higher Ed in 4 charts — from jeffselingo-14576223.hs-sites.com by Jeff Selingo

We’ve reached the peak of high-school graduates.
The colleges in the best financial shape educate only 600,000 students.
and two others…

Majoring in video games? A new wave of degrees underscores the pressures on colleges — from usatoday.com by Zachary Schermele
From degrees in AI to social media influencing, colleges are adapting to economic trends with new majors that emphasize the debate about getting students their money’s worth.

Majors like hers are part of a broader wave of less conventional, avant-garde majors, in specialties such as artificial intelligence, that are taking root in American higher education, as colleges grapple with changes in the economy and a shrinking pool of students.
…
The trend underscores the distinct ways schools are responding to growing concerns over which degrees provide the best return on investment. As college costs soared to new heights in recent years, saddling many students with crippling loan debt, that discourse has only become increasingly fraught, raising the stakes for schools to prove their degrees leave students better prepared and employable.

“I’m a big believer in the liberal arts, but universities don’t get to print money,” he said. “If enrollment interests are shifting, they have to be able to hire faculty to teach in those areas. Money has to come from someplace.”

From DSC:
Years ago, I remember having lunch with one of the finalists for the President position of a local university. He withdrew himself from the search because the institution’s culture would be like oil and water with him at the helm. He was very innovative, and this organization was not. I remember him saying, “The marketplace will determine what that organization ultimately does.” In other words, he was saying that higher education was market-driven. I agreed with him then, and I still agree with that perspective now.

ILTACON 2024: Selling legal tech’s monorail — from abajournal.com by Nicole Black

The bottom line: The promise of GenAI for our profession is great, but all signs point to the realization of its potential being six months out or more. So the question remains: Will generative AI change the legal landscape, ushering in an era of frictionless, seamless legal work? Or have we reached the pinnacle of its development, left only with empty promises? I think it’s the former since there is so much potential, and many companies are investing significantly in AI development, but only time will tell.

From LegalZoom to AI-Powered Platforms: The Rise of Smart Legal Services — from tmcnet.com by Artem Vialykh

In today’s digital age, almost every industry is undergoing a transformation driven by technological innovation, and the legal field is no exception. Traditional legal services, often characterized by high fees, time-consuming processes, and complex paperwork, are increasingly being challenged by more accessible, efficient, and cost-effective alternatives.

LegalZoom, one of the pioneers in offering online legal services, revolutionized the way individuals and small businesses accessed legal assistance. However, with the advent of artificial intelligence (AI) and smart technologies, we are witnessing the rise of even more sophisticated platforms that are poised to reshape the legal landscape further.

The Rise of AI-Powered Legal Platforms
AI-powered legal platforms represent the next frontier in legal services. These platforms leverage the power of artificial intelligence, machine learning, and natural language processing to provide legal services that are not only more efficient but also more accurate and tailored to the needs of the user.

AI-powered platforms offer many advantages, with one of them being their ability to rapidly process and analyze large amounts of data quickly. This capability allows them to provide users with precise legal advice and document generation in a fraction of the time it would take a human attorney. For example, AI-driven platforms can review and analyze contracts, identify potential legal risks, and even suggest revisions, all in real-time. This level of automation significantly reduces the time and cost associated with traditional legal services.

AI, Market Dynamics, and the Future of Legal Services with Harbor’s Zena Applebaum — from geeklawblog.com by Greg Lambert

Zena talks about the integration of generative AI (Gen AI) into legal research tools, particularly at Thomson Reuters, where she previously worked. She emphasizes the challenges in managing expectations around AI’s capabilities while ensuring that the products deliver on their promises. The legal industry has high expectations for AI to simplify the time-consuming and complex nature of legal research. However, Applebaum highlights the need for balance, as legal research remains inherently challenging, and overpromising on AI’s potential could lead to dissatisfaction among users.

Zena shares her outlook on the future of the legal industry, particularly the growing sophistication of in-house legal departments and the increasing competition for legal talent. She predicts that as AI continues to enhance efficiency and drive changes in the industry, the demand for skilled legal professionals will rise. Law firms will need to adapt to these shifts by embracing new technologies and rethinking their strategies to remain competitive in a rapidly evolving market.

Future of the Delivery of Legal Services — from americanbar.org
The legal profession is in the midst of unprecedented change. Learn what might be next for the industry and your bar.

What. Just. Happened? (Post-ILTACon Emails Week of 08-19-2024) — from geeklawblog.com by Greg Lambert

Here’s this week’s edition of What. Just. Happened? Remember, you can track these daily with the AI Lawyer Talking Tech podcast (Spotify or Apple) which covers legal tech news and summarizes stories.

From DSC:
And although this next one is not necessarily legaltech-related, I wanted to include it here anyway — as I’m always looking to reduce the costs of obtaining a degree.

Improve the Diversity of the Profession By Addressing the Costs of Becoming a Lawyer — from lssse.indiana.edu by Joan Howarth

Not surprisingly, then, research shows that economic assets are a significant factor in bar passage. And LSSSE research shows us the connections between the excessive expense of becoming a lawyer and the persistent racial and ethnic disparities in bar passage rate.

The racial and ethnic bar passage disparities are extreme. For example, the national ABA statistics for first time passers in 2023-24 show White candidates passing at 83%, compared to Black candidates (57%) with Asians and Hispanics in the middle (75% and 69%, respectively).

These disturbing figures are very related to the expense of becoming a lawyer.

Finally, though, after decades of stability — or stagnation — in attorney licensing, change is here. And some of the changes, such as the new pathway to licensure in Oregon based on supervised practice instead of a traditional bar exam, or the Nevada Plan in which most of the requirements can be satisfied during law school, should significantly decrease the costs of licensure and add flexibility for candidates with responsibilities beyond studying for a bar exam. These reforms are long overdue.

Thomson Reuters acquires Safe Sign Technologies — from legaltechnology.com by Caroline Hill

Thomson Reuters today (21 August) announced it has acquired Safe Sign Technologies (SST), a UK-based startup that is developing legal-specific large language models (LLMs) and as of just eight months ago was operating in stealth mode.

44% of Americans Expect Importance of College Education to Decline Over Next 10 Years, New Survey Reveals

On 08/14/2024, in business side of he, change, colleges, community colleges, cost of getting a degree, Emotion, future, future of higher education, game-changing environment, higher education, learning ecosystem, parents/guardians, reinvent, staying relevant, surviving, United States, universities, vocational / trades, by Daniel Christian

44% of Americans Expect Importance of College Education to Decline Over Next 10 Years, New Survey Reveals — from prnewswire.com by College Consensus

New College Consensus poll shows most Americans think traditional 4-year college best route to satisfying career, but nearly half expect importance of traditional college education to decline over next decade, with trade school offering an equal or better return on investment.

HILLSBOROUGH, N.C., Aug. 6, 2024 /PRNewswire/ — College Consensus, a comprehensive resource for college rankings and information, has released results of a new poll asking Americans about their confidence in higher education. Their findings can be seen at:

https://www.collegeconsensus.com/research/trust-in-higher-education/

The key takeaways of that report are that:

Americans still largely trust traditional higher education, but not as much as they used to
Nearly half of Americans believe traditional college education will decline in importance in the next decade
Americans view trade school as offering almost equivalent ROI to traditional college
Trust in community college and online college is lower than traditional, but still strong
Technology bootcamps struggling to gain trust

The above is happening at the same time as this:

US colleges are cutting majors and slashing programs after years of putting it off — from apnews.com

It’s part of a wave of program cuts in recent months, as U.S. colleges large and small try to make ends meet. Among their budget challenges: Federal COVID relief money is now gone, operational costs are rising and fewer high school graduates are going straight to college.

The cuts mean more than just savings, or even job losses. Often, they create turmoil for students who chose a campus because of certain degree programs and then wrote checks or signed up for student loans.

“For me, it’s really been anxiety-ridden,” said Westman, 23, as she began the effort that ultimately led her to transfer to Augsburg University in Minneapolis. “It’s just the fear of the unknown.”

7.2M Americans Over 50 Hold Student Debt, New Report Shows [Blake]

On 08/12/2024, in business side of he, colleges, community colleges, cost of getting a degree, economics, faculty/staff, generational differences, higher education, parents/guardians, society, sociology, student-related, United States, universities, by Daniel Christian

7.2M Americans Over 50 Hold Student Debt, New Report Shows — from insidehighered.com by Jessica Blake
Urban Institute researchers say the financial burden not only puts a strain on the borrowers themselves but also the social welfare programs designed to be their safety net.

However, a recent series of reports and blog posts published by Urban Institute shows that older adults are also struggling to pay back their student loans.

By analyzing a nationally representative sample of credit records from roughly four million adults aged 50 and older, Urban Institute’s report concludes that as of August 2022, approximately 6 percent of older adults—or 7.2 million Americans—have yet to pay off their student loans. Among those same borrowers, 8 percent, or 580,000 individuals, are behind on payments. The median amount of delinquent debt was approximately $11,500.

“These disadvantages can compound over decades within and across generations, making these borrowers less able to repay their loans on time,” wrote Mingli Zhong, an Urban Institute senior research associate who specializes in borrowing behavior. “Over all, older adults are carrying more debt, not just student loan debt but all kinds of debt [medical, mortgage, etc.] into retirement,” she later told Inside Higher Ed.

Colleges keep closing. Are regulators doing enough to warn students? [Schermele]

On 08/05/2024, in adjunct faculty, business side of he, change, colleges, community colleges, cost of getting a degree, dangers of the status quo, faculty/staff, future of higher education, game-changing environment, higher education, learning ecosystem, parents/guardians, society, student-related, United States, universities, by Daniel Christian

Colleges keep closing. Are regulators doing enough to warn students? — from usatoday.com by Zachary Schermele
The Biden administration has aggressively tackled college oversight. But universities are still closing without warning, leaving students and faculty in the lurch.

That task is challenging, regardless of who’s in the White House because the federal government’s metrics for identifying at-risk private colleges have long been flawed. The most recent flutter of high-profile closures underscores how necessary federal intervention may be to protect the lives of students and faculty from getting derailed in the coming years. Tragic stories from students like Hebert are bringing new urgency to efforts to improve the government’s warning signs that a campus is flailing.

“It’s hard to see a world where colleges stop closing,” said Robert Kelchen, a higher education professor at the University of Tennessee, Knoxville, and a renowned policy expert. “So the challenge becomes: When do people know that their college is at risk?”

Also relevant/see:

Declining Enrollment, FAFSA Issues Led to More Cuts in July — from insidehighered.com by Josh Moody
Enrollment challenges, compounded by the FAFSA fiasco, drove layoffs and program cuts as colleges sought to plug budget holes.

A $100,000 sticker price at Vanderbilt U! + other items re: the higher education learning ecosystem

On 07/23/2024, in adult learning, business side of he, career development, colleges, community colleges, cost of getting a degree, dangers of the status quo, education reform, higher education, learning ecosystem, neurodivergent/special needs, parents/guardians, pathways, student-related, United States, universities, by Daniel Christian

The Progressive Case for Reforming Higher Ed — from insidehighered.com by Michael D. Smith
Customized, digital education offers a path for progressive reform, Michael D. Smith writes.

That’s the bad news. But there’s good news, too. New digital technologies have arrived during the past decade for delivering instruction and evaluating individual student learning at scale. If we embrace them, they can make real reform possible and allow us to imagine a fairer, more accessible system of higher education—one that will enable us to better serve the many students who are left out of our existing scarcity-based model.
…
I think it should be to reform our educational system in ways that will benefit society. And with the advent of new digital technologies, we have a once-in-a-generation opportunity to do just that. If we embrace those technologies now, we can democratize access to the knowledge that students from all socioeconomic backgrounds need to discover and develop their talents, and we can make it possible for them to earn the credentials they need to signal their knowledge to employers—all so that they can use their talents to make a difference in the world.

But in the years ahead, thanks to these new technologies, the broader ecosystem that these institutions exist in is going to expand and change dramatically. Gradually, elite residential colleges and universities will lose their dominant place in that ecosystem, and customized digital learning will first disrupt and then come to dominate a new system of higher education—one that reaches more people, and generates greater benefits for society, than ever before.

Enrollment woes hit both private and public colleges in 2023, S&P reports — from highereddive.com by Ben Unglesbee
Analysts with the ratings agency described a “tough year” in the higher ed world as revenue pressures ran into rising costs.

Dive Brief:

Fiscal 2023 was a “tough year” for private nonprofit colleges amid a “long trend of weakening demand,” S&P Global Ratings said in a Tuesday report.
Median full-time equivalent enrollment at private nonprofits fell 0.8% year over year in fiscal 2023, while retention rates hit a five-year low of 82.4%, according to S&P’s analysis. Given demand pressures and rising costs, institutions in the private nonprofit sector saw five times more credit downgrades than upgrades during the fiscal year.
In a separate report on public colleges, S&P analysts said the recently ended fiscal year also tested the financial resilience of those institutions, with median full-time equivalent enrollment falling 0.7% for the sector.

We have to remember all of this as we design more inclusive pathways to promising opportunities. A good job can often include flexible or hybrid working options, but a good job also includes some softer aspects connected to safety, wellbeing, creativity, growth, and the freedom to make choices and make decisions.

Dr. Michelle R. Weise in How Do You Define a Good Job?

President Joe Biden canceled an additional $1.2 billion in student debt for public servants on Thursday, the latest effort to provide loan relief and deliver on one of his signature initiatives. The assistance will affect 35,000 public service workers enrolled in the government’s loan forgiveness program, including nurses, firefighters and teachers. The Education Department has now forgiven $168.5 billion in student debt for 4.76 million Americans. Biden’s more ambitious plan to help Americans increasingly buried for decades under massive educational debt, a $400 billion plan for broad student debt relief, was blocked by the US Supreme Court.

— from Bloomberg.com’s Evening Briefing

Sticker shock: A look at the complicated world of tuition pricing — from highereddive.com by Ben Unglesbee
Despite attention to lofty sticker costs, the practice of discounting has reached new highs, confusing students and straining revenue for institutions.

This spring, the price of college rode the news cycle again as headlines featured an eye-popping $100,000 in attendance costs at Vanderbilt University.
…
The practice of marking down tuition sticker prices is decades old and comes with few benefits at this point, many experts say. It can mislead students and muddy the conversation around the value of a college education, while for institutions tuition discounting can wear on revenue and finances in a competitive environment.
…
At the same time, tuition discounting among private nonprofits hit a new high of 56.1% in 2023-24.

“The number that bothers me the most is the increasing costs for the low-income kids,” Levine said. “If you’re making $50,000 or under, you still have to come up with almost $20,000, which is essentially impossible.”

Predicting college closures — from hechingerreport.org by Jon Marcus
Colleges across the country are closing at a rapid rate – on average, about one a week. Some of the closures were unexpected, shocking people at institutions that enrolled new students and hired new faculty right up until the decision was made to close. We chatted with Jon Marcus, our senior higher education reporter, to learn more about how students and faculty can protect themselves.

Q: What made you decide to devote an entire episode of your College Uncovered podcast to college closures?

Jon Marcus: The number of colleges that are closing has grown so fast that it’s become a big part of what we cover on our beat. And since the College Uncovered podcast is meant to help consumers navigate the complicated process of pursuing higher education, we wanted to answer a question we increasingly hear from prospective students and their parents: How do I know if the college I pick will be around long enough for me to graduate? (The fact that this has become something people wonder speaks to the low level of confidence the public has in higher education these days.)

Private colleges likely won’t see big net tuition growth anytime soon, Fitch says — from highereddive.com by Ben Unglesbee
Fitch Ratings found a 1.1% year over year increase in net tuition revenue for fiscal 2023, but this isn’t enough to preserve margins at private nonprofits.

Dive Brief:

Fitch Ratings found net tuition grew in fiscal 2023 among the colleges it rates but warned that the hikes would not be sufficient to preserve margins for private nonprofits.
Across its portfolio of rated institutions, Fitch found a 1.1% year-over-year increase in net tuition and fees, marking renewed growth after two years of declines, according to Fitch Senior Director Emily Wadhwani.
“In our view, prospects for future growth in net tuition for 2024 and beyond remain limited, and will likely remain near or below 2%-2.5% annually on average for the next few years,” Wadhwani said by email.

Do Shocking College Tuition Prices Reflect What Students Actually Pay? — from edsurge.com by Nadia Tamez-Robledo

It’s no secret that high school students are looking at the prospect of college more skeptically, and a large part of their hesitation comes from worry about taking on thousands of dollars in student loans.

It’s only natural that they would experience sticker shock after researching the annual cost of attendance at universities that have caught their eye — which might be equivalent to a parent’s annual salary.

But should students count on having to scrape together that full amount?

Not likely, based on EdSurge’s number crunching.

From DSC:
But the problem is that many don’t know the games that are played behind the scenes within the world of higher education. Some families/students might see the retail price of a degree and say, “No way man…no can do.” The sticker shock is real in many cases (and not to mention the stories of seeing other friends and family members in debt decades after graduating).

How merit aid is expanding — from jeffselingo-14576223.hs-sites.com by Jeffrey Selingo

Excerpt (emphasis DSC):

Bottom line: Discounting is so widespread in higher ed now that the frequent comparisons of merit aid to “Kohl’s cash,” the discount strategy employed by the mid-market retailer–where basically every day is a sale–are not wrong.

“With a few exceptions, colleges all now have an opening bid with families,” said Brian Zucker, who runs Human Capital Research Corporation, one of several firms that assists colleges with their discounting strategies.
This discounting approach worked when institutions were able to raise their top-line prices and thus extract more revenue each year from students.
But at many colleges, net-tuition revenue is flat or falling. Fitch Ratings said last week that institutions it rates for bonds saw their net-tuition revenue rise just 1.1% last year–not enough to keep up with inflation or have enough of a financial cushion to weather the current enrollment storms.
Just like in the 1970s, when colleges developed tuition discounts, the time has come for higher ed to come up with a new pricing scheme in addition, of course, of finding ways to reduce costs.

The New Trick Families Are Using to Lower College Tuition Bills — from nymag.com by Jeffrey Selingo
Many schools are eager for paying students — and ready to offer deals.

“Colleges keep giving out more merit aid to more families because they can’t get them to pay more,” Mark Salisbury told me. Salisbury, a former administrator at Augustana College in Illinois, runs TuitionFit, a website where people can share their financial-aid offers and see what others like them got. Most of the money that colleges are giving out in merit aid isn’t coming from the endowment. Rather, it’s revenue the college never receives — a simple price cut off the top. Salisbury and others in the business refer to it as “Kohl’s cash,” after the discount strategy employed by the mid-market retailer.

Is College Worth It? Poll Finds Only 36% of Americans Have Confidence in Higher Education — from usnews.com by Associated Press
A new poll finds Americans are increasingly skeptical about the value and cost of college

Americans are increasingly skeptical about the value and cost of college, with most saying they feel the U.S. higher education system is headed in the “wrong direction,” according to a new poll.

Overall, only 36% of adults say they have a “great deal” or “quite a lot” of confidence in higher education, according to the report released Monday by Gallup and the Lumina Foundation. That confidence level has declined steadily from 57% in 2015.

Enrollment Planning in the Specter of Closure — from insidehighered.com by Mark Campbell and Rachel Schreiber; via GSV
Misunderstandings about enrollment management and changing student needs can make a bad situation worse, Mark Campbell and Rachel Schreiber write.

Excerpts (emphasis DSC):

However, we find that many institutions provide little to no information to prospective students about actual outcomes for graduates. Examples include: What does applying to graduate school look like for graduates? Employment and earning potential? Average student loan debt? What do alumni say about their experience? What data do you have that is compelling to answer these and related questions? Families increasingly ask, “What is the ROI on this investment?”
…
Another important issue relates to the unwillingness of leaders to evolve the institution to meet market demands. We have too often seen that storied, historic institutions have cultures that are change averse, and this seems to be particularly true in the liberal arts. This statement might appear to be controversial—but only if misunderstood.

To be clear, the humanities and the arts are vital, critical aspects of our institutions. But today’s prospective students are highly focused on career outcomes, given the financial investment they and their families are being asked to make. We believe that curricular offerings can place a high value on the core principles of the humanities and liberal arts while also preparing students for careers.

By contrast, curricular innovation, alterations to long-held marketing practices, openness to self-reflection regarding out-of-date programs, practices and policies—in short, a willingness to change and adapt—are all key. Finally, vital and successful institutions develop long-term strategic enrollment plans that are tactical, realistic and assessable and for which there is clarity about accountability. Putting these practices in place now can avert catastrophe down the road.

“More colleges are breaching their debt requirements: S&P” [Unglesbee] + other items re: the higher education learning ecosystem

On 07/03/2024, in Alternatives, business side of he, change, changing business models, colleges, community colleges, cost of getting a degree, credentialing, future of higher education, game-changing environment, higher education, leadership, learning ecosystem, microlearning, parents/guardians, student-related, United States, universities, by Daniel Christian

More colleges are breaching their debt requirements: S&P — from highereddive.com by Ben Unglesbee
Amid operating pressures, some institutions are struggling to meet financial metrics stipulated in their bond and loan covenants.

Dive Brief:

A growing number of colleges are breaching bond and loan stipulations, known as covenants, that require them to stay within certain financial health parameters, according to a new report from S&P Global Ratings.
The agency cited 12 colleges it rates that have breached covenants since last June. In most cases, bondholders waived the violation. Some covenants could allow debtholders to accelerate repayment, which could add to an institution’s liquidity and ratings risks.
S&P downgraded ratings for about half the institutions with violations, typically because of underlying financial issues. “We see continued credit quality divergence in the U.S. higher education sector, with weaker-positioned institutions experiencing budgetary pressure and covenant violations,” the analysts said.

Student Loan Borrowers Owe $1.6 Trillion. Nearly Half Aren’t Paying. — from nytimes.com by Stacy Cowley (behind a paywall)
Millions of people are overdue on their federal loans or still have them paused — and court rulings keep upending collection efforts.

After an unprecedented three-year timeout on federal student loan payments because of the pandemic, millions of borrowers began repaying their debt when billing resumed late last year. But nearly as many have not.

That reality, along with court decisions that regularly upend the rules, has complicated the government’s efforts to restart its system for collecting the $1.6 trillion it is owed.

Universities Investing in Microcredential Leadership — from insidehighered.com by Lauren Coffey
As microcredential programs slowly gain traction, more universities are looking for leaders to coordinate the efforts.

Microcredentials—also known as digital badges, credentials, certificate, or alternative credentials—grew in popularity during the COVID-19 pandemic. Now they are attracting renewed interest as institutions look to widen their nets for nontraditional students as an enrollment cliff looms.

In addition to backing these programs, some universities are going further by hiring staff solely to oversee microcredential efforts.

A Plan to Save Small Colleges — from insidehighered.com by Michael Alexander
Small colleges could join forces through a supporting-organization model, Michael Alexander writes.

The challenges are significant. But there is a way to increase the probability of survival for many small colleges or spare them from a spartan existence. It involves groups of colleges affiliating under a particular structure that would facilitate both (1) a significant reduction in operating costs for each college and (2) a rationalization of each college’s academic offerings to concentrate on its strongest programs.

“There are many reasons undergrad enrollment is down, but they all come down to two interrelated trends: jobs and affordability.” + We need to “reposition higher ed for a different future of competitors.” [Selingo]

On 06/29/2024, in adjunct faculty, Adobe, apprenticeships, business side of he, career development, colleges, community colleges, cost of getting a degree, credentialing, culture, curriculum, faculty/staff, future of higher education, game-changing environment, higher education, ideas, innovation, IT in HE, leadership, learning ecosystem, liberal arts, parents/guardians, reinvent, skills, society, sociology, staying relevant, strategy, student-related, surviving, trends, United States, universities, by Daniel Christian

From DSC:
As I can’t embed his posting, I’m copying/pasting Jeff’s posting on LinkedIn:

According to Flighty, I logged more than 2,220 flight miles in the last 5 days traveling to three conferences to give keynotes and spend time with housing officers in Milwaukee, college presidents in Mackinac Island, MI, and enrollment and marketing leaders in Raleigh.

Before I rest, I wanted to post some quick thoughts about what I learned. Thank you to everyone who shared their wisdom these past few days:

We need to think about the “why” and “how” of AI in higher ed. The “why” shouldn’t be just because everyone else is doing it. Rather, the “why” is to reposition higher ed for a different future of competitors. The “how” shouldn’t be to just seek efficiency and cut jobs. Rather we should use AI to learn from its users to create a better experience going forward.
Residence halls are not just infrastructure. They are part and parcel of the student experience and critical to student success. Almost half of students living on campus say it increases their sense of belonging, according to research by the Association of College & University Housing Officers.
How do we extend the “residential experience”? More than half of traditional undergraduates who live on campus now take at least once course online. As students increasingly spend time off campus – or move off campus as early as their second year in college – we need to help continue to make the connections for them that they would in a dorm. Why? 47% of college students believe living in a college residence hall enhanced their ability to resolve conflicts.
Career must be at the core of the student experience for colleges to thrive in the future, says Andy Chan. Yes, some people might see that as too narrow of a view of higher ed or might not want to provide cogs for the wheel of the workforce, but without the job, none of the other benefits of college follow–citizenship, health, engagement.
A “triple threat grad”–someone who has an internship, a semester-long project, and an industry credential (think Salesforce or Adobe in addition to their degree–matters more in the job market than major or institution, says Brandon Busteed.
Every faculty member should think of themselves as an ambassador for the institution. Yes, care about their discipline/department, but that doesn’t survive if the rest of the institution falls down around them.
Presidents need to place bigger bets rather than spend pennies and dimes on a bunch of new strategies. That means to free up resources they need to stop doing things.
Higher ed needs a new business model. Institutions can’t make money just from tuition, and new products like certificates, are pennies on the dollars of degrees.
Boards aren’t ready for the future. They are over-indexed on philanthropy and alumni and not enough on the expertise needed for leading higher ed.

From DSC:
As I can’t embed his posting, I’m copying/pasting Jeff’s posting on LinkedIn:

It’s the stat that still gnaws at me: 62%.

That’s the percentage of high school graduates going right on to college. A decade ago it was around 70%. So for all the bellyaching about the demographic cliff in higher ed, just imagine if today we were close to that 70% number? We’d be talking a few hundred thousand more students in the system.

As I told a gathering of presidents of small colleges and universities last night on Mackinac Island — the first time I had to take [numerous modes of transportation] to get to a conference — being small isn’t distinctive anymore.

There are many reasons undergrad enrollment is down, but they all come down to two interrelated trends: jobs and affordability.

The job has become so central to what students want out of the experience. It’s almost as if colleges now need to guarantee a job.

These institutions will need to rethink the learner relationship with work. Instead of college with work on the side, we might need to move to more of a mindset of work with college on the side by:

Making campus jobs more meaningful. Why can’t we have accounting and finance majors work in the CFO office, liberal arts majors work in IT on platforms such as Salesforce and Workday, which are skills needed in the workplace, etc.?
Apprenticeships are not just for the trades anymore. Integrate work-based learning into the undergrad experience in a much bigger way than internships and even co-ops.
Credentials within the degree. Every graduate should leave college with more than just a BA but also a certified credential in things like data viz, project management, the Adobe suite, Alteryx, etc.
The curriculum needs to be more flexible for students to combine work and learning — not only for the experience but also money for college — so more availability of online courses, hybrid courses, and flexible semesters.

How else can we think about learning and earning?

AI literacy emerges as a global imperative
AI readiness initiatives drive emerging skill adoption across regions
The digital skills gap persists in a rapidly evolving job market
Cybersecurity skills remain crucial amid talent shortages and evolving threats
Micro-credentials are a rapid pathway for learners to prepare for in-demand jobs
The global gender gap in online learning continues to narrow, but regional disparities persist
Different regions prioritize different skills, but the majority focus on emerging or foundational capabilities

You can use the Global Skills Report 2024 to:

Identify critical skills for your students to strengthen employability
Align curriculum to drive institutional advantage nationally
Track emerging skill trends like GenAI and cybersecurity
Understand entry-level and digital role skill trends across six regions

Learning Ecosystems

DC: Shame on you Northwestern University!

44% of Americans Expect Importance of College Education to Decline Over Next 10 Years, New Survey Reveals

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